Liabilities are defined as:

Question

Quizplus · Accepted Answer

Liabilities are amounts that a business owes to lenders, creditors or suppliers, and they represent the claims of others against the assets of the company. They can include loans, accounts payable, taxes owed, and other obligations. Retained earnings (A) are the profits that a company has earned and kept in the business. Stockholders' claims to assets (C) refer to the equity or ownership interest that shareholders have in a company's assets. Future economic benefits (D) are not liabilities, but rather an indicator of an asset's potential to generate future cash flows.

Liabilities Are Defined As